- Title: European stocks rally on Fed relief, German DAX up 2.2% in early trading
- Date: 5th May 2022
- Summary: FRANKFURT, GERMANY (MAY 5, 2022) (REUTERS) TOP VIEW OF TRADING FLOOR AT FRANKFURT STOCK EXCHANGE TRADER SEATED, DAX BOARD IN BACKGROUND DAX CURVE POINTING DOWNWARDS TRADER BOARD SHOWING DAX START AT 14,282.77 POINTS TRADER, SEEN THROUGH COMPUTER SCREENS VARIOUS OF BANK SHARES ON BOARD ROBERT HALVER, HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, WALKING PAST AND LOOKING AT DAX BOARD BOARD SHOWING DAX INCREASE OF 260.95 POINTS OT 1.87% (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: “Despite the rate increase in the United States the markets’ reaction is very positive because the U.S. Federal Reserve boss has presented a relatively clear plan for further rate increases. He even said there was a chance that inflation would disappear over the course of the year. That’s positive and so we will not see massive rate increases.†TRADERS DAX BOARD (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: “The U.S. Federal Reserve is more of a stabilisation central bank. It increases interest rates. The ECB won’t follow suit because the ECB has other problems: the war in Ukraine and all of its consequences is closer to us than it is to the United States. We are export nations, we need the raw materials we can’t get in adequate quantities right now and we need to stick together (gestures). We are overindebted so the ECB is much more interested in keeping interest rates low for a long time to come and it can’t fight inflation the way the U.S. Fed does.†VARIOUS OF TRADERS BOARD SHOWING DAX HIGH OF 14,315.24 POINTS AT 09:04 A.M. (0704 GMT), FOUR MINUTES INTO TRADING (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: “The EU is imposing further sanctions against Russia, an oil embargo and the intention to decouple Russia’s largest bank, Sberbank from SWIFT. But when you take a closer look those are not the most effective measures: first, the EU can replace the oil relatively quickly and the Russian can look for other clients. And as far as SWIFT goes, Sberbank can obviously open accounts with Gazprom bank where there are no sanctions.†TOP VIEW OF TRADING FLOOR
- Embargoed: 19th May 2022 10:20
- Keywords: DAX ECB Frankfurt analyst Robert Halver U.S. Federal Reserve interest rate rise shares stocks market
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Europe,Economic Events
- Reuters ID: LVA001588705052022RP1
- Aspect Ratio: 16:9
- Story Text: European stocks rallied on Thursday (May 5), taking cues from Wall Street overnight after the Federal Reserve raised interest rates as expected but cooled aggressive tightening bets, with sentiment lifted further by a slew of upbeat earnings.
By 0709 GMT, the pan-European STOXX 600 index rose 1.8%, reversing much of the losses made so far this week.
In Frankfurt, the DAX was up 2.2% in early trading before it lost ground some two hours after the market’s 9 a.m. (0700 GMT) opening.
Analyst Robert Halver of Baader bank predicted the European Central Bank (ECB) would not follow suit and raise rates.
“The ECB has other problems: the war in Ukraine and all of its consequences is closer to us than it is to the United States. We are export nations, we need the raw materials we can’t get in adequate quantities right now and we need to stick together,†said Halver.
“We are overindebted so the ECB is much more interested in keeping interest rates low for a long time to come and it can’t fight inflation the way the U.S. Fed does.â€
Shortly before noon (1000 GMT), the German DAX stood at 14,150 points, an increase of 178 points or 1.28%.
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